Tennant Company Reports 2017 Second Quarter Results
Record net sales for a second quarter of $270.8 million increased 24.9 percent, including
impact of IPC Group acquisition. Organic sales declined 2.3 percent;
Reported per share loss of $0.15 includes special items primarily related to IPC acquisition;
Adjusted EPS, excluding special items, of $0.60;
Company reaffirms 2017 full year net sales guidance range and lowers EPS guidance range
MINNEAPOLIS, Aug. 2, 2017-Tennant Company (NYSE: TNC), a world leader in designing, manufacturing and marketing of solutions that help create a cleaner, safer, healthier world, today reported record second quarter net sales of $270.8 million and a net loss of $2.6 million, or a $0.15 loss per share, for the quarter ended June 30, 2017. The 2017 second quarter included special items that reduced earnings by a total of $0.75 per share: a $4.7 million pre-tax charge, or $0.27 per share, for acquisition costs related to the IPC Group acquisition; a $6.2 million pre-tax charge, or $0.22 per share, reflecting acquisition-related financing costs; a $6.2 million pre-tax charge, or $0.25 per share, for acquisition-related inventory step-up flow through; and a $0.2 million pre-tax charge, or $0.01 per share, related to a pension plan settlement charge. Excluding these special items, adjusted 2017 second quarter net earnings were $10.6 million, or $0.60 per share. In the 2016 second quarter, Tennant’s net earnings were $15.3 million, or $0.85 per diluted share, on net sales of $216.8 million. (See the Supplemental Non-GAAP Financial Table.)
"Our performance during the 2017 second quarter primarily reflected near-term operational headwinds mainly stemming from our first quarter 2017 restructuring,” said Chris Killingstad, Tennant Company's president and chief executive officer. “During the second quarter, we closed and began integrating our acquisition of IPC Group. IPC boosts our presence and market share in Europe and more than doubles Tennant’s current EMEA business and we are pleased with IPC’s contribution at this early stage. Furthermore, we achieved the important strategic milestone of launching new e-Commerce capabilities in June, which will allow us to better serve our customers. Lastly, we forged ahead with efforts, following our restructuring, to rebalance and reallocate our resources, as well as initiatives toward improving field service productivity and manufacturing efficiencies. These actions negatively impacted the gross margin of Tennant, excluding IPC. While we are
The following information was filed by Tennant Co (TNC) on Wednesday, August 2, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: TNC CIK: 97134 Form Type:10-Q Quarterly Report Accession Number: 0000097134-17-000034 Submitted to the SEC: Wed Aug 09 2017 4:13:31 PM EST Accepted by the SEC: Wed Aug 09 2017 Period: Friday, June 30, 2017 Industry: Refrigeration And Service Industry Machinery